Government's Official Forecaster Cuts Borrowing Forecast for Coming Five Years

LONDON—U.K. Treasury chief George Osborne said the economy would grow more rapidly and government borrowing would be lower than expected in the coming years, the first time he has been able to deliver encouraging news to austerity-weary Britons since his government was elected in 2010.

But he said Thursday that the government won't let up on its program to cut its debts, saying spending must continue to shrink if it is to "fix...